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Eni’s activities in Kazakhstan

Eni’s activities in Kazakhstan

Eni’s activities in Kazakhstan

Overview

In detail:

the main activities in the Upstream sector conducted by Eni in Kazakhstan since 1992

a focus on Kashagan and Karachaganak fields

Eni offices and contacts in Kazakhstan

Exploration & Production

Eni has been present in Kazakhstan since 1992, over a developed and undeveloped acreage of 6,281 square kilometers (1,543 square kilometers net to Eni). Eni is co-operator of the Karachaganak field and partner in the North Caspian Sea Production Sharing Agreement (NCSPSA).

Eni cooperates with state company KazMunayGas (KMG) the Isatay block (Eni’s interest 50%) located in the Kazakh sector of the Caspian Sea. The Isatay block is estimated to have significant potential oil resources.

Kashagan

Eni holds a 16.81% interest in the North Caspian Sea Production Sharing Agreement (NCSPSA). The NCSPSA defines terms and conditions for the exploration and development of the giant Kashagan field, which was discovered in the Northern section of the contractual area in the year 2000 over an area extending for 4,600 square kilometers. The NCSPSA expires at the end of 2041.

Production In 2018, production of the Kashagan field averaged 303 kbbl/d of liquids (50 kbbl net to Eni) and 451 mmcf/d of natural gas (74.6 mmcf/d net to Eni). The treated gas is delivered to the national gas marketing and transportation company (KazTransGas) and the remaining volume was utilized as fuel gas for internal use. The remaining untreated gas volume (approximately 30%) is reinjected in the reservoir. The liquid production is stabilized at Bolashak facilities and exported to Western markets through the Caspian Pipeline Consortium (Eni’s interest 2%) and the Atyrau-Samara pipeline.

Development In 2019, Experimental Program development of the field is expected to lead to plateau oil production capacity of about 370 kbbl/d, on a 100% basis. Additional phases of development are being studied, which contemplate increasing gas injection capacity, the conversion of production wells into injection wells and the upgrading of the existing facilities. Within the agreements with local Authorities, training program progressed for Kazakh resources in the Oil & Gas sector, in addition to the realization of infrastructures with social purpose.

Karachaganak

Located onshore in West Kazakhstan, Karachaganak (Eni’s interest 29.25%) is a liquid and gas giant field. Operations are conducted by the Karachaganak Petroleum Operating consortium (KPO) and are regulated by a PSA. Eni and Shell are co-operators of the venture.

Production In 2018, production of the Karachaganak field averaged 240 kbbl/d of liquids (44 kbbl/d net to Eni) and 998 mmcf/d of natural gas (190.6 mmcf/d net to Eni).

This field is developed by producing liquids from the deeper layers of the reservoir. The gas is marketed (about 50%) at the Russian gas plant in Orenburg and the remaining volumes is utilized for reinjecting in the higher layers and the production of fuel gas.

Approximately 95% of liquid production are stabilized at the Karachaganak Processing Complex (KPC) and exported to Western markets through the Caspian Pipeline Consortium and the Atyrau-Samara pipeline. The remaining volumes of non-stabilized liquid production was marketed at the Russian terminal in Orenburg until September 2018, when the purchase agreement expired.

Development Within the gas treatment expansion projects of the Karachaganak field, the Karachaganak Process Center Debottlenecking project was sanctioned. Activities progressed with completion expected in 2020. Additional reinjection capacity will be ensured by installing a new reinjection facility in addition to the existing ones.

Eni continues its commitment to support local communities in the nearby area of the Karachaganak field. In particular, activities focused on: (i) professional training; and (ii) realization of kindergartens and schools, maintenance of bridges and roads, construction of sport centers.

Abay

The Kazakh Ministry of Energy, KazMunayGas and Eni in July 2019 signed a protocol of direct negotiations to grant the subsoil use right for exploration and production of hydrocarbons within joint operations on Abay, an offshore area in the Kazakhstani sector of the Caspian Sea. The Abay block is located in the northern part of the Kazakhstan sector of the Caspian Sea, approximately 50 km from the coast in a water depth of less than 10 meters. The block is estimated to have significant potential for hydrocarbon resources.

Offices & contacts

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